Greg Secker – Global Market Update

The DOW sold off during the session finishing the day down 77 points. The S&P closed down 10 points. After gapping lower at the open the NASDAQ rallied up into positive territory, but did sell of at the close finishing the day flat. The FTSE, writes Greg Secker, 100 gapped lower at the open and traded lower for the rest of the session closing down 47 points. Futures – DOW is called up 25, FTSE is called up 5 points. Oil has pulled back below $90 and is currently trading at $89.60 a barrel and gold at $786.40 – Remember to watch out for the US FED interest rate decision, at 19:15 UK time, where a 0.25% base rate cut is expected. 

The DOW pushed higher from the open but did run into some resistance at the 13900 level, closing the session up 63 points. The S&P added 5 points and the NASDAQ closed up 13 points. The FTSE, writes Greg Secker, 100 gapped higher at the open but could not hold on to the gains falling back during the session. There was a small rally into the close ending the session up 44 points. Futures – DOW is called down 40 points, FTSE is called down 20 points. Oil has pulled back from the highs and is trading at $92.80 a barrel and gold at $786.90. 

The DOW traded higher during the session adding 134 points and closing above the two week down trend line. The S&P gapped higher and closed the session adding 20 points, above the trend line and all moving averages. The NASDAQ had a major gap higher at the open but did pull back during the session, but still managed to add 53 points on the day and closed above the 2800 level. The FTSE, writes Greg Secker, 100 continues its push back up to the resistance level adding 85 points on Friday. Futures – DOW is called up 45 points, FTSE is called up 60 points. Oil is trading at new all time highs at $93 a barrel and gold is at a 20 year high at $796.40. 

The DOW traded the session back and forth and ended the day down 3 points. The S&P also traded back and forth closing down 1 point, but the NASDAQ closed down 34 points. The FTSE, writes Greg Secker, 100 gapped higher at the open and continued to push higher during the session closing up 94 points. The FTSE, writes Greg Secker, 250 added 202 points. Futures – DOW is called up 45 points, FTSE is called up 15 points. Oil has climbed back up to new record highs and is trading at $91.46 a barrel, gold is trading at $779.80. 

The DOW gapped lower at the open and traded down to the 13500 level where it found some support late in the session to rally to the close to finish the session down 1 point. The S&P also put in a late rally to close the session down 3 points. The NASDAQ gapped lower and traded lower till the late rally but still closed down 24 points. The FTSE, writes Greg Secker, 100 traded high at the open but fell with the American markets in the afternoon closing down 32 points finding some support at the 50 ema. Futures – DOW is called down 20 points, FTSE is called up 50 points. Oil is trading at $86.88 a barrel and gold at $765.50. 

The DOW continued is rally from the recent drop to close the session up 109 points just under the 50 ema. The S&P added 13 points and the NASDAQ was the biggest % gainer adding 45 points and closing just under the 2800 level. The FTSE, writes Greg Secker, 100 gapped up at the open and traded higher during the session but did fall back from the highs in late afternoon trading to close the session up 54 points. The FTSE, writes Greg Secker, 250 added 181 points. Futures – DOW is called down 65 points, FTSE is called up 10 points. Oil is trading at $85.10 a barrel and gold at $761.60. 

The DOW fell at the open, but found support around the 13400 level which is also the 50% fib retracement level of the recent rally since min August, and rallied to the close to finish the session up 45 points. The S&P added 5 points and the NASDAQ added 28 points. The FTSE, writes Greg Secker, 100 had a big gap lower at the open but tried to trade higher during the session to close down 68 points. The FTSE, writes Greg Secker, 250 gapped below the moving averages and closed the session down 121 points. Futures – DOW is called up 30 points and the FTSE is called up 60 points. Oil is trading at $85.85 a barrel and gold at $760.80. 

The DOW had a relatively quiet session yesterday ending the day down 3 points, we have a low test reversal bar off the up trend line, watch this line for a break or bounce. The S&P traded around the 20 ema closing the session down 1 point. The NASDAQ gapped lower at the open but rallied during the session to close up 6 points. The FTSE, writes Greg Secker, 100 gapped higher at the open but pulled back with the news out yesterday from Bank of America causing the FTSE 100 to close down 68 points. The chart looks to have formed a lower high below the 6750 resistance level which is a bearish signal. Futures – DOW is called down 80 points, FTSE called down 25 points. Oil jumps to over $90 a barrel and is currently trading at $89.50 a barrel and gold at $772.90. 

Many private investors have recognised that having a share dealing, spread bet and contract for different (CFD) account, in their trading arsenal, allows them to use the right tool for the right job, maximising potential profit opportunities.  Although it’s no secret that more and more people are opening spread betting accounts these days, with the larger brokers seeing over 300 applications per week.
But the real question is when to use which instrument for which job?

Generally speaking for short term trades (those lasting a few days), Spread betting the cash price has become very popular – with no capital gains tax on profits, extremely competitive pricing in a now very liquid instrument and no stamp duty to pay, it really is difficult to beat. 

However, the nature of the dealing relationship with spread betting, means unlike share dealing and cfds, you are, for the most part betting against the broker and hence there is little incentive for the broker to work with you to price improve – also losses incurred on spread betting accounts, cannot be offset against tax.
For longer term investments, we should compare share dealing with CFD’s or contracts for difference.

CFD’s whilst allowing tremendous leverage over regular share dealing, incur a funding cost.
This funding cost is approximately 3% on the 90% of the position that the CFD provider has effectively lent you. Traditional share dealing incurs a 0.5% stamp duty charged upfront. So there is a point where the CFD funding costs overtake the costs incurred from the share dealing costs, and this is around the 10-12 week mark- thus if you are intending holding a position for less than 3 months, you are generally better off with a CFD.

Thus in summary, if the length of you investment carries the following time frame, these are your options: